“The rate of insolvencies has been declining since hitting a peak in 2010; however our experience at National Debtline and Business Debtline is that this is because many people simply can’t afford to go bankrupt. Getting the £700 (£525 for the deposit plus £175 for the court fee) together to petition for bankruptcy is not easy for people already struggling with debts. The result is that people are often left to drift in a financial black hole where they can’t afford to repay their debts, can’t afford bankruptcy, and have no other way out.

“We urge the Insolvency Service to move quickly to implement new powers* to allow the fees and deposit for bankruptcy to be paid in instalments, and that those instalments can be paid over a sufficiently lengthy period of time to ensure bankruptcy is once again an accessible option for those that need it.

“Anyone struggling with their finances should seek free impartial advice. Advice is available over the phone or email at National Debtline, or online at My Money Steps. An adviser can talk you through your options and help you find a sustainable route to financial health.”